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Level 3
Jun 6, 2019 8:14 AM UTC
Solved

1099-div for minor

I established a small investment account for my 15 year old son last year under his SSN. now we get $33.33 1099-div form.
do I need to include that in my tax return?  Or we just ignore it because he doesn't have any other income?
Answer
Jun 6, 2019 8:15 AM UTC

If the dividend income is the child's only source of income, there is no filing requirement. The general rule is stated below:

Your dependent must file their own federal tax return if any of the following are true:

  • Unearned income was over $1,050.
  • Earned income was over $12,000.
  • Gross income was more than the larger of—
    • $1,050, or
    • Earned income (up to $11,650) plus $350.

If none of the above apply, your dependent may file a tax return to claim a refund of any federal tax withheld.

Additionally, if your dependent has net earnings from self-employment of $400 or more, they will be liable for FICA self-employment tax at a rate of 15.3%.


1 reply

Answer
Jun 6, 2019 8:15 AM UTC

If the dividend income is the child's only source of income, there is no filing requirement. The general rule is stated below:

Your dependent must file their own federal tax return if any of the following are true:

  • Unearned income was over $1,050.
  • Earned income was over $12,000.
  • Gross income was more than the larger of—
    • $1,050, or
    • Earned income (up to $11,650) plus $350.

If none of the above apply, your dependent may file a tax return to claim a refund of any federal tax withheld.

Additionally, if your dependent has net earnings from self-employment of $400 or more, they will be liable for FICA self-employment tax at a rate of 15.3%.